First time I found out about cloaking was back in 2006 and always had it as backup option in case my white hat SEO sites got hit or even whole industries got shutdown (e.g. at first poker went down, then online casinos were completely banned in Russia, where my biggest focus was on)
Some of our sources of revenues for our agency are:
a) Building Cloaking Sites (no questions asked)
b) building viral sites (that can either be white hat and rewritten, or used for cloaking after getting approved by Adwords, Bing, FB etc.)
Funnily enough, some guys come to us, say that they are running cloaking sites and still have basic questions.
Here's a quick overview with real life examples (make sure to use a swedish vpn (if it's not blacklisted with google) or proxy/socks to see how redirects are fired.
Question: what does a cloaking site look like then ?
Answer: a shop or directory
Answer: can be golf courses, wp themes - whatever you can fix your product names into
http://bonushunterz.com/topplistan/
https://gpkingdom.com/
http://kasinokampanjer.co/
http://svenska247online.com/
Question: what type of offers do those pages go along with? like what verticals ?
Question: http://svenska247online.com/ - that one for instance
Answer: casinos
Question: a video game shop for casinos ?
Answer: 25 Bästa Erbjudanden Begränsade kampanjer bara för Svenska gäster (25 Best Offers Limited promotions only for Swedish guests), they are running this approved ad on multiple brands
Answer: and target brand searches
Answer: so
Answer: they get approved for "25 best bonuses etc." and redirect branded searches
Hope this answers some basic questions about cloaking, and welcome to get a cloaking or viral site from us.
Btw, if the examples above die off, let me know, we'll keep the list updated with new "artefacts". We scan Google search in 27 countries, so I'm always happy to burn a competitor or two for case studies 